Wakeup Call: Equities Will Trade Flat On The Lack Of Decisions From The G20 Meeting In Washington

Daily Forex Fundamentals | Written by Saxo Bank | Nov 17 08 08:23 GMT |

The lack of clear directional decisions coming out from the G20 meeting in Weekend will make equities trade flat during the day. Oil is trading lower as well as EURUSD. Calendar Economic Data Releases Country Name Time (GMT) Expectation Prior Comment EC E-Z Trade Balance (SEP) 10:00 -5.7B -6.1B US Empire Manufacturing (NOV) 13:30 -26.0 -24.6 US Industrial Production (OCT) 14:15 0.2% -2.8% Could be lower. Earnings Releases Country Name Time (GMT) Expectation Prior Comment US Lowe’s Co n/a 0,283 What's going on? G20 over the weekend: 1) calls for additional rate cuts and fiscal stimulus. 2) calls for streamlining of international accounting standards and oversight of hedge funds and rating agencies - Deadline in March for these. The statement from the summit has been criticized for not offering enough concrete suggestions. Ecuador apparently delaying or defaulting on a $30.6M interest payment. That could lead to more losses in EM related assets today. US retail sales figures on Friday were worse than ugly. Headline now running at -4.1% YoY. Retail Sales Less Autos also really weak. The anti-hedge fund trade is doing well and we expect it to continue towards year-end: Short EURUSD, short Stocks, short Crude Oil. FX FX Daily stance Comment EURUSD - Nervous market. 1.2775 key resistance. 1.2400 trendline support. Sell if <> EURJPY - Bearish if below 1.2350 area. 120.00 initial support and then 118.50-80 USDJPY 0/- Rangy. 96.00 needs to go for more downside. Resistance around 97.20-40 GBPUSD 0/- Bearish if below 1.5000. Support at 1.4560 low. Tactical sell if <1.4800 USDCAD + Support at 1.2275. Buy dips with stops well below for 1.2500+ Equities Equities Daily stance Comment DAX 0/- Sell at the break of 4691. Target 4658 initially, 4607 finally. S/L at 4724. FTSE 0/- Sell at the break of 4228. Target 4182. S/L at 4238. S&P500 0/- Sell at the break of 867. Target 842. S/L at 875. Nasdaq100 0/- Nikkei225 Futures Commodities Daily Stance Comment Gold (XAUUSD) - Sell around 745 with a stop above 750. Target 729. Silver (XAGUSD) - Sell around 9.94 with a stop above 10.15. Target 9.55. Oil (CLZ8) - Sell around 56 with at stop above 56.30. Target 54.90. Analysis Disclosure & Disclaimer Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated. Saxo Bank utilizes financial information providers and information from such providers may form the basis for an analysis. Saxo Bank accepts no responsibility for the accuracy or completeness of any information herein contained. Any recommendations and other comments in Saxo Bank's analysis derive from objective fundamental macro economical and company specific calculations, statistical and technical analysis, and subjective general market assessment. If an analysis contains recommendations to buy or sell a specific financial instrument, such recommendation should be seen as Saxo Bank's opinion that the specific instrument will respectively outperform the relevant market or underperform compared to the market. Saxo Bank's recommendations should statistically correspond to an even distribution between buy and sell recommendations. The recommendations may expire promptly due to market volatility and in general, Saxo Bank does not anticipate its recommendations to be valid more than one month. An analysis will be updated if and only if a market development or other issues relevant to the analysis render a new analysis on the same topic relevant. Saxo Bank's analysis does not cover any specific financial product over time but only products which Saxo Bank's strategy team finds it important to cover at any given point in time. In order to prevent conflicts of interest, Saxo Bank has established appropriate business procedures, incl. procedures applicable to research and analysis to ensure objective research reports. Saxo Bank's research reports have not been discussed with the parties, e.g. issuers of securities, mentioned in the analysis. Saxo Bank is under supervision by the Danish Financial Supervisory Authority. Saxo Bank does not engage in corporate finance activities and accordingly, Saxo Bank's employees, incl. the persons responsible for an analysis, do not receive remuneration associated with investment banking transactions.